Feb 4, 2013 2:30pm PST
are desperate to bring the crisis under control. they want to excel britney eurozone and the eu's political and economic integration. >> our political correspondent is following this and we go live to our parliamentary studios. all parties concerned about corruption in spain likely to hinder the premier and his ability to solve the crisis in his country? are those concerns in berlin? >> his own personal ratings are at an all-time low before the allegations surfaced. both think it could be the last straw, but he has denied that there is any truth of the matter. at the press conference in berlin, he said three times "absolutely false" a reference to these allegations and that he would prove they are false. we will wait and see. even if they cloud of suspicion remains hanging over him, it is not at all certain that it will hamper his political maneuverability in spain. recent surveys show 96% of spaniards believe the political class in spain as corrupt anyway. remarkably, although they are angry about it, they show an extraordinary degree of resignation. >> there is quite a bit of resignation.
Feb 4, 2013 9:00am EST
of the bulge names in part because of the eu risk is higher in those. how serious do you take a day like today on that front? >> well, our biggest concern really is the continued unstable nature of greece. i think spain and italy will be fine as long as greece doesn't create a chain reaction, which i think it will. and i'm still very concerned about what is going on there. but as you guys pointed out, you know, you came into early 10, early 11, early 12 and felt good, trends were good and the eu kind of put the kibosh on ceo confidence and capital markets activity. i'm concerned about that. >> you seem less worried. >> we're more worried about the u.s. economy. i think what we're seeing now in the marketplace makes sense. we had the megabanks lead the rally late last year. we recently have switched to the regional banks outperforming the megabanks and now we're getting that normal consolidation period which is to be expected. look at the ten-year treasury yield, that's what we say. if above ten for first quarter -- above 2% for first quarter, then earnings estimates will probably go higher. wh